Starting in April of 2012, investors in the UK can get a good tax break using the Seed Enterprise Investment Scheme. Using this, one can invest up to£100,000 in a start up business in one year, or up to£150,000 over two years. You can them claim back-tax relief of 50% of the amount of investment. The business invested has to be a UK company, and the investor cannot control the company receiving the capital. In addition the company receiving the capital must be in an approved sector and be a start-up. It is designed to spur the economy and entrepreneurship. Basically, the way it works out, is it gives a giant incentive to the investor who decides to invest in a small start-up. A£100,000 may actually only cost the investor£18,000 after the tax relief is factored in, and of course the investor still gets the returns from their investment. All told, this seems an excellent way to boost small business.